How Do You Know That Your Child Might Become a Technical Analyst?
Buy this game for him!
By Markets Chimp
9/2/17 4:10 AM
Ramy Rashad, CMT
The shocking reality is that Technical Analysis is not a pure science that can be mastered by reading more books, studying thousands of indicators, or having a charting software; it’s a gift that is not for everyone!
If you search for "Technical Analysis books" on Google, you will find thousands of them with very catchy titles. The authors of these books are just writing their own experiences, not the TRUE thing because in the Technical Analysis Dictionary the word "TRUE" is not actually there!
The major and the only true concept behind Technical Analysis is that the price/volume movements are not random, but they move in patterns, thousands—if not millions—Repetitive Patterns. Let’s prove this result:
What is the pattern? The pattern is a combination of the price and the volume movements.
Who creates these patterns? The buyers and the sellers do.
Why are these patterns repetitive? This is because the human nature is constant, and human beings will keep doing the same thing over and over again given the same circumstances, thus creating the same patterns over and over again!
Some great technical analysts, like Richard Schabackar, named some of these patterns (for example, Head & Shoulders, Triangles, Rectangles, and so on), but in the price/volume actions, there are actually thousands of repetitive patterns that are unnamed!
The gifted technical analysts can see those unnamed patterns over and over again; you can hear one of them say: "This instrument is building a bullish pattern the name of which I don’t know, but I saw it before!" So it’s all about SEEING the repetitive patterns, and this is actually a gift that cannot be acquired by learning!
So, how do you know that your child has this gift? I have conducted some research on the children’s famous games that are closely related to the child’s perspective, and I have found that the “Jigsaw Puzzle” is the closest one! This is the definition of the “Jigsaw Puzzle” from Wikipedia: “A jigsaw puzzle is a tiling puzzle that requires the assembly of often oddly shaped interlocking and tessellating pieces. Each piece usually has a small part of a picture on it; when complete, a jigsaw puzzle produces a complete picture.”
Check the red bold words: “Assembly” and “Complete Picture”. This is actually what the gifted technical analyst does on a daily basis; s/he assembles the odd price and volume bars, which have no significant meaning if not assembled properly, to produce (or to create) a complete and a clear picture to finally be able to make a decision!
So, if you think that your child is very clever in picking the Jigsaw puzzle pieces, he might be good, in the future, in picking the right stocks!